dmertz
Level 15

Retirement tax questions

marcisikoff , I don't see how your reply addresses anything related to this ancient thread because the original question asked nothing about the tax consequences of the transactions.  A recharacterization to a Roth IRA can only come from a contribution that had been made to traditional IRA.  The original poster made a regular Roth IRA contribution, recharacterized it to be a traditional IRA contribution instead, then did a Roth conversion.  It's the Roth conversion that was reported on a code-2 Form 1099-R.  The original poster was also unaware that any distribution from an IRA is deemed by the tax code to be "income" whether taxable or not, meaning that the distribution is reportable on the tax return.

 

Finally, the last sentence you posted is not accurate.  Even if the traditional IRA contribution is nondeductible, a Roth conversion may be taxable to some extent depending on whether the individual has other money in traditional IRAs.  The taxable amount of the Roth conversion is determined on Form 8606.